Martins Owoseni

The Nigerian Naira, on Thursday, depreciated in the parallel market to N1,520 per dollar from N1,510 per dollar on Wednesday.

Similarly, the Naira depreciated to N1,510.1 per dollar in the Nigerian Autonomous Foreign Exchange Market (NAFEM).

According to data from FMDQ, the indicative exchange rate for NAFEM rose to N1,510.1 per dollar from N1,507.83 per dollar on Wednesday, indicating N2.27 depreciation for the naira. The volume of dollars traded (turnover) in the market rose by 62.8 percent to $287.21 million from $176.39 million traded Wednesday.

Consequently, the margin between the parallel market and NAFEM rates widened to N10 per dollar from N2.17 per dollar on Wednesday.

Nigeria is battling to contain a historic currency crisis and soaring inflation.

President Bola Tinubu’s government came to power in May 2023, inheriting a highly precarious economic situation, characterized by anemic growth, rising inflation, low revenue collection and import-export imbalances that had accumulated over many years.

His administration promptly launched a raft of economic reforms aimed at liberalizing the economy, such as the removal of fuel subsidies and the relaxation of currency controls.

Though welcomed by foreign investors, the short-term impact has been an uncorking of the various macroeconomic issues that had been artificially contained by the interventionist policies.

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